MT&LP - Test 1

social responsibility challenges faced by most modern managers in today's society are

(1) the social audit challenge, (2) the philanthropy challenge (3) the sustainable organization challenge.

LEED

(Leadership in Energy and Environmental Design), → an ecology-oriented certification program that rates the ecological impact of buildings of all types.

importing

(buying goods or services from another country)

Protectionism

(high tariffs on imports/limiting number of foriegn goods) hurts an economy - WTO tries to eradicate this

contemporary view

3 basic activities: task related, change related, and people related

To influence employees of many cultures successfully, managers in multinational corporations should do the following:

Acquire a working knowledge of the languages used in the countries that house foreign operations Understand the attitudes of people in the countries that house foreign operations Understand the needs that motivate people in the countries housing foreign operations

adv/dis of brainstorming

Advantage: encouraging the expression of as many useful ideas as possible Disadvantage: wastes the group's time on ideas that are wildly impractical

Planning guidelines and principles

Always consider implementation - Who needs to know what, resistance, likely problems Involve important stockholders - Those involved in execution of affected by it Allocate time needed for planning

Third-country national

An organization member who is a citizen of one country and works in another country for an organization headquartered in still another country

Host-country national

An organization member who is a citizen of the country in which the facility of a foreign-based organization is located - Employment increasing → normally the least expensive to employ

"Golden Rule" approach

DO to others what you want them to do to you it emphasizes individual morality major flaw is that individuals apply the Golden Rule from their own particular frames of reference without knowing the cultural expectations, traditions, and preferences of the other person.

Stage 2 of Multinationalization

Establishes sales organizations abroad

Culture profiles

Expatriates learn about the new culture in which they will be working.

Environmental Protection Agency (EPA)

Formulates and enforces environmental standards in areas such as water, air, and noise pollution

Unrealistic Optimism

Individuals' tendency to believe that they are less susceptible to risky events (i.e., earthquakes, disease transmission, etc.) than others

process of MBO consists of five steps

Review organizational objectives Set worker objectives Monitor progress Evaluate performance Give rewards

Bandwagon Effect

The tendency to believe certain outcomes will occur (i.e., the stock market will increase) because others believe the same thing

Confirmation Bias

The tendency to search for information that supports one's preconceived beliefs and to ignore information that contradicts those beliefs

glass ceiling.

The term refers to an invisible "ceiling," or barrier, to advancement. originally coined to describe the limits confronting women, now used for other groups as well

principle of the objective.

This principle holds that before managers initiate any action, they should clearly determine, understand, and state organizational objectives.

small scale entry to the market place

allows firm to learn about a foreign market while simultaneously limiting the firm's exposure to that market

transnational organization

also called a global organization, views the entire world as its business arena Doing business wherever it makes sense is the primary goal national borders are considered inconsequential transcends any single home country, with ownership, control, and management located in many different countries (no loyalty to any one country.) most commonly cited transnational organization is Nestlé

international market agreement

an arrangement among a cluster of countries that facilitates a high level of trade among these countries

hoarding orientation of decision makers

characterized by the desire to preserve the status quo as much as possible. Decision makers with this orientation accept little outside help, isolate themselves from others, and are extremely self-reliant. They are obsessed with maintaining their present position and status.

factor that probably contributes most to this increased complexity and challenge is

culture

role conflict

having to fill competing roles because of membership in two cultures

programmed decision

is routine and repetitive, and the organization typically develops specific ways to handle such decisions.

relevant alternative

one that is considered feasible for solving an existing problem and for implementation. Alternatives that will not solve an existing problem or cannot be implemented are irrelevant and should be excluded from the decision-making situation.

Recency bias:

only focus on the most recent occurrence of the problem

gender-role stereotypes,

or perceptions about people based on what our society believes are appropriate behaviors for men and women. Both sexes find their self-expression constrained by gender-role stereotyping women in organizations are often assumed to be good listeners, an attribution based on our societal view that women are nurturing.

heuristics,

or simple rules of thumb, to make decisions. when managers rely on rules of thumb when making decisions, their decisions are often flawed

international organizations

organizations that are based primarily within a single country but that have continuing, meaningful international transactions—such as making sales and purchasing materials—in other countries

Managers should generally make concerted effort to do the following

perform all legally required social responsibility activities consider voluntarily performing social responsibility activities Beyond those legally required (Entails Assessing the positive and negative outcomes of Performing social responsibility activities over both short and long terms / Performing activities in a way that maximizes management system a success while making a desirable contribution to the welfare of society) inform all relevant individuals of the extent to which the organization will become involved in performing social responsibility activities

management employability skill

person's ability to gain and maintain a career as a manager

Advantages of planning

planning is advantageous to an organization, particularly in the creation of new ventures → Planning does not eliminate risk -- it helps managers to be future-oriented -- enhances decision coordination. -- emphasizes organizational objectives

two different conditions under which decisions are made

risk and uncertainty

rationale is primarily based on

scope of the decision levels of management

significant scale market entry

strategic commitment to the market decision has a long-term impact and is difficult to reverse

bicultural stress

the stress of coping with membership in two cultures simultaneously

Long-term objectives

—targets to be achieved in five to seven years

Intermediate-term objectives

—targets to be achieved in one to five years

Short-term objectives

—targets to be achieved in one year or less

Floating exchange rates

→ change based on supply and demand

5 themes of training

Behavioral awareness Acknowledgment of biases and stereotypes Focus on job performance Avoidance of assumptions Modification of policy and procedure manuals

Brainstorming

Brainstorming is a group decision-making process in which negative feedback on any suggested alternative by any group member is forbidden until all members have presented alternatives that they perceive as valuable designed to encourage all group members to contribute as many viable decision alternatives as they can think of Premise: if the evaluation of alternatives starts before all possible alternatives have been offered, valuable alternatives may be overlooked

Two Facets of Globalization

Globalization of markets globalization of production : --> ability of firms to produce and buy goods and services from around the world - Allows companies to lower costs, diversify, and improve the quality of products - Problems: coordination

Exchange rate:

How much your currency is worth when you exchange it with another countries currency

two types of strategies that individuals use to reduce the number of alternatives.

Inclusion and Exclusion Research suggests that, compared to inclusion, exclusion results in a larger consideration set. Therefore, the risk of eliminating a potentially desirable alternative is greater using inclusion than it is using exclusion

Why managers should build sustainable organizations

Increased profit -- People will do business with them just because they are sustainable Increased productivity -- sustainable workplaces include features like temperature control, clean air, noise control, and appropriate lighting. Increased innovation

managers who make foreign investments expect such investments to accomplish the following:

Reduce or eliminate high transportation costs Allow participation in the rapid expansion of a market abroad Provide foreign technical, design, and marketing skills Earn higher profits

Occupational Safety and Health Administration (OSHA)

Regulates safety and health conditions in nongovernment workplaces.

risk vs uncertainty

Research suggests that individuals dislike uncertainty even more than they dislike risk Vague or unknown probabilities of success are more likely to discourage managers from undertaking actions than is risk

ensure ethics in other countries

Respect Core Human Rights - underscores the idea that all people deserve an opportunity to achieve economic advancement and an improved standard of living - all people have the right to be treated with respect. Respecting Local Traditions - managers hold in high regard the customs of foreign countries in which they conduct business Determining right from Wrong by Examining Context - managers evaluate the specifics of the international situation confronting them when determining whether a particular management activity is ethical

expected value (EV)

for an alternative is the income (I) that the alternative would produce, multiplied by its probability of producing that income (P). In formula form, EV = I × P. Decision makers generally choose and implement the alternative with the highest expected value

Sexual harassment

form of discrimination defined as any unwanted sexual language, behavior, or imagery negatively affecting an employee According to the Equal Opportunity Commission, sexual harassment may include requests for sexual favors when such favors explicitly or implicitly become a term or condition of an individual's employment or education.

Decline Stage

fourth and last stage in career evolution; occurs near retirement age, when individuals of about 65 years of age show declining productivity

Problems

gap between what there is and what we want

Multicultural approach

gives employees the opportunity to develop an appreciation both for differences of a culture and for variations in personal characteristics. focuses on how interpersonal skills and attitudinal changes relate to organizational performance. strength: assumes the organization itself—as well as the individuals working within it—will be required to change in order to accommodate the diversity of the organization's workforce. advocates change on the part of management, employees, and organization systems and structures

Two practices that commonly inspire unethical behavior in organizations

giving unusually high rewards for good performance and giving unusually severe punishments for poor performance.

groupthink

group decisions can be of lower quality than individual decisions if they become contaminated by the group members' efforts to maintain friendly relationships among themselves

paradox of choice

having too many alternatives may actually demotivate decision makers, which harms decision making

role overload

having too many expectations to fulfill comfortably

fundamental purpose of planning

help the organization reach its objectives.

Decisions can be categorized according to

how much time a manager must spend making them, what proportion of the organization must be involved in making them, or the organizational functions on which they focus two basic types: programmed and nonprogrammed

4 main organizational resources

human, monetary, raw materials, capital

first step in this elimination process is

identifying exactly what the problems or barriers are: Only after the barriers have been adequately identified can management take steps to eliminate them.

research suggests that past decisions often

influence current choices of alternatives

plan for diversity

involve selecting diversity training programs for the organization or setting diversity goals for employees within the department. Key component: Setting goals for the recruitment of members of underrepresented groups

technical skills

involve the ability to apply specialized knowledge and expertise to​ work-related techniques and procedures.

Conceptual skills

involve the ability to see the organization as a whole.

Globalization

is The trend toward increased international management

Social responsibility

is a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.

decision

is a commitment to a course of action that serves the interests of certain individuals a choice of one alternative from a set of available alternatives

Recruiting

is a function performed by managers during the organizing process.

non programmed decision

is typically a one-shot decision that is usually less structured than programmed decisions.

standing plan

is used over and over again because it focuses on organizational situations that occur repeatedly subdivided into policies, procedures, and rules (must be consistent and mutually supportive)

organizational purpose

is what the organization exists to do, given a particular group of customers and customer needs.

risk

refers to situations in which statistical probabilities can be attributed to alternative potential outcomes.

uncertainty

refers to situations where the probability that a particular outcome will occur is not known in advance A situation in which the decision maker has neither certainty nor reasonable probability estimates available

Minority group

refers to that group of people in the organization who are fewer in number than the majority group or who lack critical power, resources, acceptance, and social status.

Majority group

refers to that group of people in the organization who hold most of the positions that command decision-making power, control of resources and information, and access to system rewards. Does not always have the greatest number

Probability

refers to the likelihood that an event or outcome will actually occur, which is estimated by calculating an expected value for each alternative considered.

Varying Opinions of Social responsibility

→ highly controversial whether or not businesses should be involved in social responsibility activities

organization chart

→ is the graphic illustration of organization structure.

Determining whether a social responsibility exists

→ managers should determine which specific social obligations are implied by their business situation

Philanthropy (part of philanthropy challenge)

→ promotes the welfare of others through generous monetary donations to social causes aims to increase the well-being of people. philanthropy by businesses commonly includes donations geared toward supporting the arts, education, world peace, and disaster relief. generally recommended that managers donate to causes that in some way benefit the organization as well as society --> make such gifts in societal areas that afford the organization a competitive advantage in the marketplace

Sustainability

→ the degree to which a person or entity can meet its present needs without compromising the ability of other people or entities to meet needs the more an entity increases its ability to meet present needs without compromising the ability of others to meet their needs in the future, the more sustainable the entity is. growing interest focuses on topics like how organizations can better conserve natural resources, reduce organizational waste, recycle used resources, and preserve the environment by protecting threatened plant and animal species

Social audit (part of social audit challenge)

→ the process of measuring the present social responsibility activities of an organization to assess its performance in this area Basic steps: monitoring, measuring, and appraising all aspects of an organization's social responsibility performance measurements vary according to the specific social responsibility objectives to be met -- areas include: environmental Area, Community area, responsible buying area, and wellness area

Human capital

(knowledge, skills, organization, and leadership) is the key to economic growth and competitiveness.

domestic organizations

(least international involvement) essentially operate within a single country; normally not only acquire necessary resources within a single country but also sell their goods or services within that same country

Operational/Contingency planning

(lower level managers) - Help Smaller operational units reach middle management goals - Planning horizon <1 Op planning has two types - Planning for Ongoing operations -Planning for Specific projects

exporting

(selling goods or services to another country)

Tactical planning

(senior and middle managers) - Plans for Major subdivisions to achieve broad action plans with provided resources - 1-2 year time horizon

parent company

(the company investing in the international operations)

host country

(the country in which the investment is made)

Strategic planning

(top exec) - Purpose: To guide organization as a whole - Vision on where they wanna go in the next 3-5 years - To determine strategic plan: Use org strengths and weaknesses

Problem recognition: real world

- All have psychological aversion to problems - Problem recognition takes time, effort and money

Equal Employment Opportunity Commission (EEOC)

- Investigates and conciliates employment discrimination complaints that are based on race, sex, or creed. - the federal agency that enforces the laws regulating recruiting and other management practices. managers should view the EEOC as a source of guidance on how to build organizational diversity and reap its related advantages rather than as a source of punishment when EEOC legislation is not followed

Areas for org objectives

- Market standing - Innovation - Productivity - Physical and financial resources - Profitability - Managerial performance and development - Worker performance and attitudes - Public responsibility

The rational problem solving ideal

- Rational problem solvers → undistracted - Complete information and time for problem solving - Clear problem solving methods and goals

to compare financial consequences of each decision

- Study estimates of investment amounts necessary - Weigh the probabilities of facing different product demand levels for various decision alternatives. - Consider projected income yields for each decision alternative. Analysis of the expected values and net expected gain for each decision alternative helps management decide on an appropriate choice

Real world problem solving

- Very different problem solvers involved with different agendas and goals - Never enough information or time - Methods and goals not always clear - "Rational" decision making is a struggle at best --> No perfect rational people

Employee responses

- natural resistance to change - Ethnocentrism - lack of information and outright misinformation about other groups - prejudices, biases, and stereotypes. - receive no social rewards (e.g., peer support and approval) or concrete rewards (e.g., financial compensation or career opportunities) for cooperating with the organization's diversity policies.

Guidelines for obj quality

1) Guidelines for obj quality Let the people responsible for attaining the objectives have a voice in setting them— 2) State objectives as specifically as possible 3) Relate objectives to specific actions whenever necessary 4) Pinpoint expected results 5) Set goals high enough that employees will have to strive to meet them but not so high that employees will give up trying to meet them 6) Specify when goals are expected to be achieved 7) Set objectives only in relation to other organizational objectives 8) State objectives clearly and simply

A desirable and socially responsive approach to meeting social obligations does the following:

1) Incorporates social goals into the annual planning process. 2) Seeks comparative industry norms for social programs. 3) Presents reports to organization members, the board of directors, and stockholders on social responsibility progress. 4) Experiments with different approaches for measuring social performance. 5) Attempts to measure the cost of social programs as well as the return on social program investments.

Steps in planning process

1) State organizational objectives 2) List alternative ways of reaching objectives 3) Develop premises on which to base each alternative 4) Choose the best alternative for reaching objectives 5) Develop plans to pursue the chosen alternative—strategic (long-range) and tactical (short-range) plans 6) Put the plans into action

four ways to enter a foreign market

1) exports - common first step - avoids setup costs - incurs transport tariff costs 2) licensing - right to sell for a fee - avoids setup costs and risks - can lose technology to local firm 3) joint ventures - partner with local firm - local knowledge - shared ricks 4) wholly owned subsidiary - fully owned - bears all the risk - Most expensive and risky - After exporting wholly owned is the most popular form of entry

Advantages of diversity:

1) group decisions often improve the quality of decision making 2 ) larger pool of information and a richer array of approaches to solve work problems 3) Cost savings 4) Increased productivity and Innovation 5) Better quality management (by providing a wider pool of talent.) 6) Gaining/keeping market share (diversity in ranks enhances a company's credibility with customers; better understand and respond to customer needs)

elements of decision situation

1) individuals or groups who actually make the choice among the alternatives 2) goals that decision makers seek to attain are another element of the decision situation 3) decision situation is usually composed of at least two relevant alternatives. 4) ordering alternatives 5) choice of alternatives

Challenges in managing a diverse workforce

1)Changing demographics 2) the number of generations working in an organization -- each generation brings its own unique experiences, values, and issues into the workplace 3)

Classic View

3 skills to be successful: human, technical, and professional -- as you move up conceptual skills become more important

Early "satisficing"

:become satisfied with the information we have and stop searching before we find what is important - Associated with confirmation bias: stop when we find supporting evidence of our opinion - How much is enough?

pros and cons of geocentric attitude

Adv: - promotes collaboration between foreign and home-country management and encourages the development of managerial skills regardless of the organizational segment or country in which managers operate. - Pay offs: better-quality products, worldwide utilization of the best human resources, increased managerial commitment to worldwide organizational objectives, and increased profit Dis - incurs high travel and training expenses - many decisions are made by consensus.

adv/dis of Delphi technique

Advantage: ideas can be gathered from group members who are too geographically separated or busy to meet face-to-face Disadvantage: members are unable to ask questions of one another.

adv/dis of nominal group technique

Advantage: offers a structure in which individuals can support or reject an idea without fear of recrimination Disadvantage: group members have no way of knowing why individuals voted the way they did

older workers

Advantages: willingness to work nontraditional schedules, their ability to serve as mentors, and their strong work ethic. Disadvantages of hiring older workers might include their lack of technology experience and possible increased benefit costs to the organization due to their health-care needs. now is the time to start recruiting them Once hired, management must focus on meeting the needs of older workers. (requires an understanding of and sensitivity to the physiological and psychological changes)

Exchange rate inc

American dollar appreciated: cheaper to import, more expensive to export Foreign imports rise (get less expensive) American exports fall (get more expensive)

Exchange rate dec

American dollar depreciated: cheaper to import, more expensive to export Foreign imports fall (get more expensive) American exports rise (get less expensive)

Expatriate

An organization member who lives and works in a country where he or she does not have citizenship many people experience confusion, anxiety, and stress related to the need to make cultural adjustments in their organizational and personal lives workers may encounter different attitudes toward work and different perceptions of time in the workplace

Favorable markets

Are politically stable Have free market systems Have relatively low inflation rates/Have low private sector debts -- Signals of the strength of the economy and its potential for growth Have an unmet need for ones product

Less desirable markets

Are politically unstable Have mixed or command economies Have excessive levels of borrowing Weak economic or legal systems

Fundamentals of businesses social responsibility

Areas of social responsibility varying options on social responsibility conclusions about the performance of social responsibility activities by businesses

Mining Enforcement and Safety Administration

Attempts to improve safety conditions for mine workers by enforcing all mine safety and equipment standards.

National Highway Traffic Safety Administration (NHTSA)

Attempts to reduce traffic accidents through the regulation of transportation-related manufacturers and products.

five limitations on the number of problem-solving alternatives available:

Authority factors (e.g., a manager's superior may have told the manager that a certain alternative is not feasible) Biological or human factors (e.g., human factors within the organization may be inappropriate for implementing certain alternatives) Physical factors (e.g., the physical facilities of the organization may be inappropriate for certain alternatives) Technological factors (e.g., the level of organizational technology may be inadequate for certain alternatives) Economic factors (e.g., certain alternatives may be too costly for the organization)

Arguments for businesses partaking in social responsibility

Businesses as a whole are a subset of society, that is very influential and therefore must contribute to overall welfare of society Profitability and growth go hand in hand w/ treatment of employees, customers, and the community (Social responsibility activities is a means of earning greater organizational profit) -- Empirical studies have not yet demonstrated a definitive relationship between social responsibility and profitability

Loss Aversion

Characteristic of individuals who tend to more strongly prefer avoiding losses rather than acquiring gains

preparing expatriates for foreign assignments

Companies helping adjust by providing assistance finding homes/helping families providing special training programs - can lower the amount of time expatriates need to adjust and can thereby help them become productive more quickly

U.S. investment in foreign countries and investment by foreign countries in the U.S. is expected to

Continue growing with slowdowns during recessions

two different processes when making decisions.

Core concept: individuals may also rely on additional processes when making decisions System 2 processing - Brain trying to be the "rational decision maker" carefully seeking and considering information - Distinguishes us from all other animals System 1 processing - The "unconscious decision maker" - Driven by unconscious motives, values, rules and emotions - Not good for new/complicated problems

Arguments against businesses partaking in social responsibility

Creates a conflict of interest that could potentially cause the demise of business as it is known today, especially if the business is continually forced to perform socially responsible actions that directly conflict with private org objectives Requiring business managers to do both would be unethical b/c sometimes involves money which would take from the company/consumers -- Managers are responsible to business owner and should conduct business in the ways they would like (typically maximize profit while following the basic rules of society)

common steps managers can take to establish an ethical workplace.

Creating, distributing, and continually improving a company's code of ethics to appoint a chief ethics officer (has job of ensuring that organizational ethics and values are integrated into daily decisions at all organizational levels. --> Skills needed to be a successful CEO) furnish organization members with appropriate training. -- programs give criteria they can use to help determine how ethical a certain action might be

Delphi technique

Delphi technique involves circulating questionnaires on a specific problem among group members, sharing the questionnaire results with them, and then continuing to recirculate and refine individual responses until a consensus regarding the problem is reached (does not have group members meet face-to-face) Step 1: A problem is identified. Step 2: Group members are asked to offer solutions to the problem by providing anonymous responses to a carefully designed questionnaire. Step 3: Responses of all group members are compiled and sent out to all group members. Step 4: Individual group members are each asked to generate a new solution to the problem after they have studied the individual responses of all other group members compiled in step 3. Step 5: Steps 3 and 4 are repeated until a consensus solution is reached.

Trade between countries depends on

Demand for countries goods Political stability Interest rates Exchange rate

Two most critical decisions for an organization to make in order to maintain a high level of social responsiveness within an organization:

Determining exactly which social responsibilities an organization should pursue -- must pursue only those responsibilities their organization possesses and has a right to undertake deciding how to pursue them are the

Ways to improve decision making in groups:

Diversity of backgrounds and expertise (Wide range of views Avoids groupthink which allows a group to explore the problem space fully) Recognized expertise (Weight the judgment of individuals with relevant specialist knowledge over the individuals with without that knowledge) Find hidden information (To prevent essential information from being overlooked, encourage the sharing of information by the minority not just the majority) Look beyond confidence (Confident speakers aren't always the most knowledgeable; Consider fixed speaking times and no interruption rules so others are heard) Avoid social influence (Good decision making relies on individual group members giving their own opinions; If hierarchy exists, its better to collect opinions anonymously) Challenge the status quo (Be prepared to tackle problems in new ways because standard options don't always work) Establish checks and balances (Everyone should agree) Monitor for unconscious bias

management should strive to make the organization sustainable in three areas:

Economy --> the sustainable organization engages in certain behaviors such as minimizing waste by not overproducing goods and generating a fair profit for stakeholders the environment --> the sustainable organization engages in certain behaviors such as minimizing waste by not overproducing goods and generating a fair profit for stakeholders Society --> the sustainable organization engages in certain behaviors such as maintaining the well-being and protection of the communities in which it does business

Office of Federal Contract Compliance Programs

Ensures that employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex.

Stage 4 of Multinationalization

Establishes foreign manufacturing facilities

Planning in multinational corporations

Establishing a new salesforce in a foreign country Developing new manufacturing plants in other countries through purchase or construction Financing international expansion Determining which countries represent the most suitable candidates for international expansion importing/exporting

in 2015 US Investment

Europe was the biggest foreign investor in the United States (69%) Asia and the Pacific region was 18%, Latin America/Western Hemisphere was (17%), Middle East and Africa were both 1%,

Federal Legislation requires that businesses perform certain social responsibility activities

Ex: EPA has the authority to require businesses to adhere to certain social responsible environmental standards Equal Pay Act of 1963 Equal Employment Opportunity Act of 1972 highway safety act of 1978 Clean Air Act Amendments of 1990

Application

Expatriates learn about the specific organizational roles they will have.

Logistical information

Expatriates learn basic information, such as personal safety, whom to call in an emergency, and how to write a check.

Cultural adaptation

Expatriates learn how to survive the difficulties of adjusting to a new culture.

Stage 1 of Multinationalization

Exports its products to foreign countries

Problem solvers

Individual - Part to play in how groups go on in organizations Group - Dis: More time to solve problems - Adv: Produce better solutions Organizations - Dis: have to handle changes in products and service/how to handle the competition, decisions have to go through many departments - Adv: impact can be huge

tips for helping groups make good decisions

Instead of talking about whether alternatives are good or bad or whether a group member is right or wrong, talk about the pros and cons of every alternative. Identify the main issue, such as customer satisfaction or company strategy, and evaluate the alternatives in terms of that issue. Be sure to look at more than one alternative. Ask all the participants to suggest their two best choices. If group opinion is divided, look for a choice that all group members say they can live with. People are more likely to support implementation if they can accept the decision.

Being able to answer yes to questions like the following would indicate that an organization is operating in a manner that is consistent with the triple bottom-line standard:

Is the organization providing a fair return to its stakeholders? (economic area) Is the organization protecting or improving the natural environment through its work methods? (environmental area) Is the organization protecting or improving the overall quality of life in the communities in which it does business? (societal area)

Stage 3 of Multinationalization

Licenses use of its patents and know-how to foreign firms that make and sell its products

control for diversity

Managers engaged in the controlling function in the area of diversity need to monitor their units' progress continually with respect to diversity goals and standards. must also decide what control measures to use (e.g., indicators of productivity, turnover, absenteeism, or promotion) and how to interpret the information these measures yield in light of diversity goals and standards.

"consciously competent."

Managers learn how to interact with diverse groups and cultures by deliberately thinking about how to behave.

The real problem for decision making

Misses Poor framing - how a problem is presented frames what is to be solved and how to do so Missing Other perspectives - Position determines prospective - All have blind spots Attribution bias: where does the cause lie? - Blame others when fail - Congratulate ourselves when succeed

Stage 5 of Multinationalization

Multinationalizes management from top to bottom

Stage 6 of Multinationalization

Multinationalizes ownership of corporate stock

organizational problems are brought to the attention of managers mainly by

Orders issued by managers' supervisors Situations relayed to managers by their subordinates The normal activity of the managers themselves

Responding Inadequately:

Other organizations comply fully with affirmative action and EEOC policies but define these policies quite narrowly. Organizational systems and structures are inadequate to support real organizational change

The Millennial Generation or Generation Y.

People born after 1980 turned 18 to 33 years old in 2014, are 27 percent of the adult population, and are 57 percent of the non-Hispanic white population. interested in being part of a team, working in a collaborative environment, and engaging with social media and other technologies

The Silent Generation.

People born between 1928 and 1945 turned 69 to 86 years old in 2014, are 12 percent of the adult population, and are 79 percent of the non-Hispanic white population.

The Baby Boom Generation.

People born between 1946 and 1964 turned 50 to 68 years old in 2014, are 32 percent of the adult population, and are 72 percent of the non-Hispanic white population. staying in the workforce longer than previous generations did and are typically more interested in wellness, having part-time jobs, and having life longevity than other generations.

Generation X

People born between 1965 and 1980 turned 34 to 49 years old in 2014, are 27 percent of the adult population, and are 61 percent of the non-Hispanic white population. interested in a balance of personal life and work

5 key differences of countries:

Political systems - Democratic (citizens elect; Ex: US, Canada) - totalitarian (1 person rules; ex: china, cuba, iran) Economic systems - Market: all production systems are privately owned and determined by supply and demand; ex: US - Command: gov play central and commanded roll on goods and services (what/how much/prices), ex: china - Mixed: sectors are private in free economy or state owned in command economy; ex: brazil and india Legal systems - Common law based on legal history on country but are modified by new cases brought to the courts (flexible) (UK, Australia, US) - Civic law based on detailed set of laws organized into codes (countries that were not a british colony (highly inflexible) (france , germany, Russia) Economic development - Developed (US, Germany ) - Emerging (fast growth rates) (South america asia, india) - Developing (low growth rates) (sudan , nigeria) Culture - Individualism (US, australia) vs collectivism (panama, guatemala) - Power distance (high: latain amaerican, asian, middle eastern countries; Low: scandiavian) - Uncertainty avoidance (high: japan; low: sweden) - masculinity/femininity (mas: japan; fem: sweden)

The two most widely used tools to make decisions

Probability theory and decision tree

employment of ethical business practices can enhance overall corporate health in three important areas:

Productivity: When management is determined to act ethically toward stakeholders, then employees will be positively affected Stakeholder relations: positive public image can attract customers who view such an image as desirable. Government Regulation: Where companies are believed to be acting unethically, the public is more likely to put pressure on legislators and other government officials to regulate those businesses or to enforce existing regulations.

SMART Goals

S = specific M = measurable A = achievable (but challenging = stretch goals) R = results oriented (focus on what to achieve) T = time specified: Target Dates

Steps for achieving sustainability regardless of the organization

Setting sustainability goals. → makes clear targets that can help with unity Hiring organization members who can help the organization become more sustainable. → Recruit and hire people that can get the job done Rewarding employees who contribute to an organization's sustainability goals. → encourages future behavior Tracking progress in reaching sustainability goals. → critical to ensuring that the organization ultimately reaches those goals.

management by objectives (MBO)

Some managers regard organizational objectives as such an important and fundamental part of management that they use a management approach based exclusively on objectives

Complying with External Policies:

Some organizations base their diversity strategies solely on compliance with affirmative action and EEOC policies. Managers in some companies in this category breach company affirmative action and EEOC policies with impunity. When top management does not discipline them, the likelihood of costly legal action against the organization increases.

Implementing Adequate Programs:

Some organizations effectively implement affirmative action and EEOC policies, provide ongoing education and training programs pertaining to diversity, and tie managerial rewards to success in meeting diversity goals and addressing diversity issues still make only a minimal attempt to cultivate the kind of inclusive and supportive organizational climate in which employees will feel comfortable.

Enforcing External Policies

Some organizations go so far as to enforce affirmative action and EEOC policies but provide no organizational support for diversity education or training. Managerial commitment to a diverse workforce is either weak or inconsistent.

Ignoring Differences:

Some organizations make no effort to promote diversity and do not even bother to comply with affirmative action and EEOC standards. send a clear message to their employees that the dynamics of difference are unimportant

stereotypes for older workers

Stereotypes and prejudices link age with senility, incompetence, and lack of worth in the labor market.

According to the Hudson Institute, six major issues demand the full attention of U.S. business leaders of the twenty-first century and require them to take the following actions:

Stimulate balanced world growth—The United States must pay less attention to its share of world trade and more attention to the growth of the economies of other nations of the world, including the nations in Europe, Latin America, and Asia, with which the United States competes. Accelerate productivity increases in service industries—Prosperity will depend much more on how quickly output per worker increases in health care, education, retailing, government, and other services than on gains in manufacturing. Maintain the dynamism of an aging workforce—As the age of the average American worker climbs toward 40, the nation must make sure that its workforce does not lose its adaptability and willingness to learn. Reconcile the conflicting needs of women, work, and families—Despite a huge influx of women into the workforce in the last two decades, many organizational policies covering pay, fringe benefits, time away from work, pensions, welfare, and other issues do not yet reflect this new reality. Fully integrate African American and Hispanic workers into the economy Improve the education and skills of all workers

Consumer Product Safety Commission

Strives to reduce consumer misunderstanding of manufacturers' product design, labeling, and so on by promoting clarity of these messages.

Taking effective action:

The most effective diversity efforts are based on managerial implementation of affirmative action and EEOC policies that are developed in conjunction with an organization-wide assessment of the company's systems and structures. for such a comprehensive assessment to take place, top management must accept the idea that diversity is important to the company.

five demographic issues will be especially important to managers in the twenty-first century

The population and the workforce will grow more slowly than at any time since the 1930s. The average age of the population and the workforce will rise, and the pool of young workers entering the labor market will shrink. More women will enter the workforce. Minorities will make up a larger share of new entrants into the labor force. Immigrants will represent the largest share of the increase in the general population and in the workforce.

Why would a manufacturer develop a decision tree?

To determine the net expected gain between making changes to its existing product and developing a new product

Overconfidence

When assessing our ability to predict future events, the tendency to believe that our forecasts are better than they truly are

international management involves operating

Within different national sovereignties Under widely disparate economic conditions Among people living within different value systems and institutions In places experiencing the industrial revolution at different times Often over great geographical distance In national markets varying greatly in population and area

Probability theory

a decision-making tool used in risk situations—situations in which decision makers are not completely sure of the outcome of an implemented alternative

code of ethics

a formal statement of an organization's primary values and the ethical rules it expects employees to follow -- acts as a guide for the ethics of how people within a particular organization should act and make decisions. commonly address issues like conflict of interest, competitors, privacy of information, gift giving, and giving/receiving political contributions or business cant cover all ethical and unethical conduct should be viewed as tools that must be evaluated and refined periodically

decision tree

a graphic decision-making tool typically used to evaluate decisions involving a series of steps → steps are interdependent; that is, each step is influenced by the step that precedes it. - various possible alternatives have been presented - financial consequence of each different course of action must be compared.

Advantages of Using Groups to make decisions

a group can generally think of more and better decision alternatives than an individual can -- A group can draw on collective, diverse organizational experiences as the foundation for decision making, whereas an individual manager has only his or her limited experiences to draw on when a group makes a decision, the members of that group tend to support the implementation of the decision more fervently than they would if the decision had been made by an individual group members tend to regard the decision as their own, and this feeling of ownership makes it more likely that they will strive to implement the decision successfully rather than prematurely give in to failure

The Virtue Standard

a guideline that determines behavior to be ethical if it reflects high moral values. action that reflects virtues like honesty, fairness, and compassion. Examples of business behavior that reflect this standard would include honesty in advertising about the worthwhile features of a product or paying suppliers a fair price for their goods no matter how much bargaining power is held over them

The Utilitarian Standard

a guideline that indicates that behavior can generally be considered ethical if it provides the most good for or does the least harm to the greatest number of people. Corporate activity that meets this standard produces the greatest good for and the least harm to all company stakeholders, including employees and customers.

Diversity training

a learning process designed to raise managers' awareness and develop their competencies to deal with the issues endemic to managing a diverse workforce.

international joint venture

a partnership formed between a company in one country and a company in another country for the purpose of pursuing some mutually desirable business undertaking International planning components that include joint ventures emphasize the attainment of organizational objectives through partnerships with foreign companies.

policy

a plan that furnishes broad guidelines for taking action consistent with reaching organizational objectives.

license agreement

a right granted by one company to another to use its brand name, technology, product specifications, and so on, in the manufacture or sale of goods and services Company pays a fee for the right International planning components in this area involve reaching organizational objectives through either the purchase or the sale of licenses at the international level

"Righting-the-wrongs" approach

addresses past injustices experienced by a particular group. When a group's history places its members at a disadvantage for achieving career success and mobility, policies are developed to create a more equitable set of conditions. closely parallels the affirmative action policies emphasizes drawing on the unique talents of each group in the service of organizational productivity.

3 processes of making group decisions

brainstorming nominal group technique delphi technique

advantages/disadvantages of decision made by consensus

advantages - it focuses "several heads" on the decision. - employees are more likely to be committed to implementing a decision if they helped make it. disadvantage - it often involves time-consuming discussions relating to the decision, which can be costly to the organization.

pros and cons of entering the international market early

advantages - can preempt operation, establish their brand - build up strong sales, establish loyalty - create "switching" costs for competition - gain valuable knowledge experience and relationships disadvantages - pioneers and counter greater costs - higher risk of failure

Assimilation approach

advocates shaping organization members so that they fit in with the existing culture of the organization. pressures employees who do not belong to the dominant culture to conform—at the expense of their own cultures and worldviews result is a homogeneous culture that suppresses the creativity and diversity of views that could benefit the organization.

North American Free Trade Agreement (NAFTA)

an international market agreement aimed at facilitating trade among member nations implemented in January 1994 actions such as phasing out tariffs on U.S. farm exports to Mexico, opening up Mexico to American trucking, and safeguarding North American pharmaceutical patents in Mexico. Pros include the reduction or elimination of taxes on imported goods from NAFTA countries. Cons include farmers in Mexico being overwhelmed by the ease of importing American agricultural products.

European Union (EU)

an international market agreement, established in 1994, that is dedicated to facilitating trade among member nations. eliminate tariffs among themselves and work toward meaningful deregulation in areas such as banking, insurance, telecommunications, and airlines. develop a set of standardized accounting principles to help facilitate business transactions among members

sustainable organization

an organization that has the ability to meet its present needs without compromising the ability of future generations to meet their needs.

Demographics

are statistical characteristics of a population. are an important tool that managers can use to study workforce diversity.

Areas of social responsibility

areas in which businesses act to protect and improve the welfare of society Most publicized: Urban affairs Consumer affairs, Community volunteerism Employment practices Ecology conservation (going green) → popular and growing

objective

becoming aware of a problem before it gets too big

geocentric attitude

believe that the overall quality of management recommendations, rather than the location of managers, should determine the acceptability of the management practices used to guide multinational corporations thought to be the most appropriate for managers in multinational corporations to have.

receptive orientation of decision makers

believe that the source of all good is outside themselves, and therefore they rely heavily on suggestions from other organization members. Basically, they want others to make their decisions for them.

exploitative orientation of decision makers

believe that the source of all good is outside themselves, and they are willing to steal ideas as necessary to make good decisions. They build their organizations on others' ideas and typically hog all the credit, extending little or none to the originators of the ideas.

Action Planning

break plan into smaller steps, develop objectives, link steps together, allocate resources (human, financial, other resources) Develop action steps - Break down action needs, develop action objectives - Link action steps to one another Allocate resources - Human: Delegation - who, what, how, when - Financial: salary, rents, purchases - Other (tools, supplies, etc.)

human skills

build cooperation within the team being led.

Availability bias:

comes up in other ways (takes more effort to research more so why do it) related to recency bias; the most recent information is the most available to us

multinational organizations

commonly called the multinational corporation (MNC) a company that has significant operations in more than one country; an organization that is involved in doing business at the international level disregards national boundaries, and it is guided by a common strategy from a corporation center

rational decision-making process

comprises the steps the decision maker takes to arrive at this choice 1) Identify an existing problem. 2) List possible alternatives for solving the problem. 3) Select the most beneficial of these alternatives. 4) Implement the selected alternative. 5) Gather feedback to find out whether the implemented alternative is solving the identified problem.

green management

considers the company's impact on the natural environment Companies across the United States and around the world have announced plans to move to more environmentally sustainable products and services.

Control in multinational corporations

control in areas such as labor costs, product quality, and inventory is important to organizational success regardless of whether the organization is domestic or international

Selecting the most beneficial alternative

decision makers should collect as much information as possible and list, as accurately as possible, the potential effects of each alternative as if the alternative had already been chosen and implemented. they should assign a probability factor to each of the potential effects; that is, they should indicate how probable the occurrence of the effect would be if the alternative were implemented keeping organizational goals in mind, decision makers should compare each alternative's expected effects and the respective probabilities of those effects

Ordering alternatives

decision situation requires a process or mechanism for ranking alternatives from most desirable to least desirable. - process can be subjective, objective, or a combination of the two. Past experience of the decision maker is an example of a subjective process, and the rate of output per machine is an example of an objective process.

Net expected gain

defined in this situation as the expected value of an alternative minus the investment cost - Choose highest

discretionary area

depicts all the feasible alternatives available to managers. Factors that limit or rule out alternatives outside this area are legal restrictions, moral and ethical norms, formal policies and rules, and unofficial social norms

Affirmative action programs

designed to eliminate barriers and increase opportunities for underutilized or disadvantaged individuals. positive steps toward promoting diversity and have created career opportunities for both women and minority groups.

nominal group technique

designed to ensure that each group member has equal participation in making the group decision Step 1: Each group member writes down his or her ideas on the decision or problem being discussed. Step 2: Each member presents his or her ideas orally. The ideas are usually written on a board for all other members to see and refer to. Step 3: After all members present their ideas, the entire group discusses these ideas simultaneously. Discussion tends to be unstructured and spontaneous. Step 4: When discussion is completed, a secret ballot is taken to allow members to support their favorite ideas without apprehension. The idea receiving the most votes is adopted and implemented.

reverse discrimination

discriminate against members of the majority group in order to help groups that are underrepresented in the organization.

Diversity helps

drive economic growth, capture the consumer market on all fronts, and recruit more qualified workforce, reduces employee turnover, and fosters innovation internally

To be sustainable, organizations must achieve success in three areas:

economic activities like minimizing waste, environmental activities like conserving natural resources, and societal activities like improving community well-being.

international environment factors

economic and cultural conditions and the laws and political circumstances in the foreign countries within which their companies operate

Change-related activities

efforts aimed at modifying organizational components. These activities include monitoring the​ organization's external​ environment, proposing new strategies and​ visions, encouraging innovative​ thinking, and taking risks to promote needed change.

Ideal orientation of decision makers

emphasizes realizing the organization's potential as well as that of the decision maker. I try to use all of their talents when making a decision and are characterized by reason and sound judgment largely free of the qualities of the four undesirable decision-making orientations just described

whistleblowers

employees who reports or raise ethical concerns (at risk of losing their jobs) can make their reports in a number of different ways, including reporting suspected organizational wrongdoings to proper legal authorities and/or proper management authorities their rights are protected by federal law, and organizations need to take employee concerns regarding legal and ethical violations seriously.

The Office of Federal Contract Compliance Programs

ensures that employers holding federal contracts grant equal employment opportunity to people regardless of their race or sex

The second stage in career evolution

establishment​ stage, during which individuals about 25 to 45 years old start to become more​ productive, or higher performers.

The Rights Standard

is a guideline that says that behavior is generally considered ethical if it respects and promotes the rights of others. indicates that in order to be ethical, corporate behavior must respect the dignity of human nature. for example, corporate action that reflects unfair labor practices like paying abnormally low wages or using child labor would be considered unethical.

Environmental footprint

is a measure of the usage of environmental resources The greater the amount of resources consumed by an organization, the greater the organization's footprint.

stereotype

is a positive or negative assessment of members of a group or their perceived attributes.

prejudice

is a preconceived judgment, opinion, or assumption about an issue, behavior, or group of people

Reverse mentoring

is a process that pairs a senior employee with a junior employee for the purpose of transferring work skills, such as Internet skills, from the junior employee to the more senior employee.

budget

is a single-use financial plan that covers a specified length of time. It details how funds will be spent on labor, raw materials, capital goods, information systems, marketing, and so on, as well as how the funds will be obtained

program

is a single-use plan that is designed to carry out a special project within an organization. The project itself is not intended to exist over the entire life of the organization

Planning

is a specific action proposed to help the organization achieve its objectives. It is an ongoing process that includes troubleshooting and continually defining areas where improvements can be made.

rule

is a standing plan that designates specific required actions. indicates what an organization member should or should not do and allows no room for deviation

procedure

is a standing plan that outlines a series of related actions that must be taken to accomplish a particular task

Consensus

is an agreement on a decision by all the individuals involved in making that decision usually is reached after lengthy deliberation and discussion by members of the decision group, who may be either all managers or a mixture of managers and subordinates. groups will sometimes be unable to arrive at a decision

how Decision making is relates to problem solving

is essentially a problem-solving process that involves eliminating barriers to organizational goal attainment.

Effective interaction

is key to carrying out the four management functions

Evaluating affirmative action

is part of the controlling function of managers.

Social responsiveness

is seen when a firm engages in social actions in response to some popular social need.

International management

is simply the performance of management activities across national borders entails reaching organizational objectives by extending management activities to include an emphasis on organizations in foreign countries can take several different forms - simply analyzing and fighting competition in foreign markets - establishing a formal partnership with a foreign company

key distinction between programmed versus nonprogrammed decisions

is that programmed decisions typically require less time and effort compared to nonprogrammed decisions.

whistleblowing

is the act of an employee reporting suspected misconduct or corruption believed to exist within the organization

Discrimination

is the act of treating an issue, person, or behavior unjustly or inequitably on the basis of stereotypes and prejudices. Discrimination occurs when stereotypes are acted upon in ways that affect hiring, pay, or promotion practices EX: sexual harassment, glass ceiling

Influencing

is the process in which managers guide members of the organization.

Decision making

is the process of choosing the best alternative for reaching objectives Managers make decisions affecting the organization daily and communicate those decisions to other organization members. Not all managerial decisions are of equal significance to the organization

Planning

is the process of determining how the organization can get where it wants to go and what it will do to accomplish its objectives. the foundation function and the first one to be performed.

scope of the decision

is the proportion of the total management system that the decision will affect. The greater this proportion, the broader the scope of the decision is said to be.

organizational objective

is the target toward which the open management system is directed.

One characteristic believed to be a primary determinant of how competently managers can guide multinational organizations is

is their attitudes toward how such organizations should operate

protective purpose of planning

is to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management actions

Disadvantages of Using Groups to make decisions

it takes longer for groups to make a decision because groups must take the time to present and discuss all members' views. group decisions cost the organization more than individual decisions do simply because group decisions take up the time of more people in the organization groupthink

Management is socially responsible to...

its stakeholders

Levels of management

lower-level management, middle-level management, and upper-level management.

The third stage in career evolution

maintenance stage. In this​ stage, individuals who are 45 to 65 years old show either increased performance​ (career growth), stabilized performance​ (career maintenance), or decreased performance​ (career stagnation).

Task-related activities

management efforts aimed at carrying out critical management-related duties in organizations

People-related activities

management efforts aimed at managing people in organizations

Change-related activities

management efforts aimed at modifying organizational components

Managerial Effectiveness

management's use of organizational resources in meeting organizational goals

Good corporate citizens:

manager who is committed to building an organization's local community and environment as a vital part of managing.

"unconscious incompetence,"

managers are unaware that some behaviors they engage in are problematic for members of other groups.

"conscious incompetence,"

managers go through a learning process in which they become conscious of the behaviors that hinder their competence in their interactions with members of diverse groups.

"unconscious competence,"

managers have internalized these new behaviors and feel so comfortable relating to others different from themselves that they need to devote little conscious effort to do so. most effective with respect to interacting in a diverse workforce

influencing for diversity

managers not only must encourage and support employees to participate constructively in a diverse work environment but also must themselves engage in the career development and training processes that will give them the skills to facilitate the smooth operation of a diverse work community. accountable for informing their employees of breaches of organizational policy and etiquette. hold employees accountable for learning about company diversity policies and complying with them.

Contemporary management theory emphasizes that

managers should be good corporate citizens when accomplishing goals

overall attitude for multinational corporations

managers with a geocentric attitude contribute more to the long-term success of a multinational corporation than do managers with an ethnocentric or a polycentric attitude.

Biculturalism

members of ethnic or racial minority groups have been socialized to be members of two cultural groups—the dominant culture and their particular racial or ethnic culture Internalized norms and values of one's culture of origin can lead to problems and misunderstandings in the workplace, particularly when a manager relies solely on the cultural norms of the majority group while dealing with people not of that group.

Precise statements (objectives)

minimize confusion and ensure that employees have explicit directions. when objectives are not​ specific, the productivity of individuals attempting to reach those objectives tends to fluctuate significantly over time.

An organization that follows the triple bottom-line standard is concerned with

minimizing waste, conserving natural resources, and improving the well-being of communities

bias

refers to departures from rational theory that produce suboptimal decisions

exploration stage

occurs at the beginning of a​ career, is characterized by​ self-analysis and the exploration of different types of available jobs. Individuals at this stage are generally about 15-25 years old and are involved in some type of formal​ training, such as college or vocational education. They often pursue​ part-time employment to gain a richer understanding of what a career in a particular organization or industry might be like.

Social obligation

occurs when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities.

inclusion

occurs when individuals choose a smaller set of the most desirable alternatives from a larger set of alternatives.

Exclusion

occurs when individuals exclude the least desirable alternatives from a larger set of alternatives.

Managers organizational support to employee responses

primary support is education and training programs designed to help employees work through their difficulties in coping with diversity. organizations should provide top down support from top managment

Sarbanes-Oxley Act

prohibits retaliation by employers against whistle-blowers

Managerial Efficiency

proportion of total organizational resources that contribute to productivity during the manufacturing process

According to C.W.​ Roney, planning has two​ purposes:

protective purpose (to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management actions The affirmative purpose is to increase the degree of organizational success

Balance of payments:

records all transactions b/n countries Made of two separate accounts: current account/financial account

organize for diversity

recruitment, hiring, and retention so that the best match is made between the company and the employees it hires. establishing task forces or committees to explore issues and provide ideas, carefully choosing work assignments to support the career development of all employees, and evaluating the extent to which diversity goals are being achieved focus on retaining them by paying attention to the many concerns of a diverse workforce

career

refers to a sequence of​ work-related positions occupied by a person over the course of a​ lifetime

Pluralism

refers to an environment in which differences are acknowledged, accepted, and seen as significant contributors to the entirety diverse workforce is most effective when managers are capable of guiding the organization toward achieving pluralism

Tokenism

refers to being one of the few members of your group in the organization. Usually, "token" employees are given very high visibility or very low visibility.

Diversity

refers to characteristics of individuals that shape their identities and the experiences they have in society. mix of races, ethnicities, religions, social classes, physical abilities, and sexual orientations -- These differences—along with the basic human differences of age and gender—comprise diversity

ethnocentric attitude

reflects the belief that multinational corporations should regard home-country management practices as superior to foreign-country management practices. Managers with an ethnocentric attitude are prone to stereotype home-country management practices as sound and reasonable and foreign management practices as faulty and unreasonable. advantage of keeping an organization uncomplicated, Dis: it generally causes organizational problems because it impedes the organization from receiving feedback from its foreign operations; even results in resentment toward the home country within the foreign society.

polycentric attitude

reflects the belief that, because foreign managers are closer to foreign organizational units, they probably understand those units better, and therefore foreign management practices should generally be viewed as more insightful than home-country management practices. advantage: permits the tailoring of foreign organizational segments to their cultures. disadvantage of creating numerous foreign organizational segments that are individually run and distinctive, which makes them difficult to control.

how approach meeting social responsibilities

requirement → view their primary responsibility as making a profit and, as a result, do only what is required by law to meet social responsibilities. Obligatory fashion → they recognize that they have both profit and social goals -- only occasionally go beyond what is required by law to meet social obligations Proactively and intently → Going well beyond what the law requires to meet social obligations is commonplace -- generally contribute more to society than the others

Kinds of problems

simple, structured problems - Objectives and methods are pretty clear - Can be difficult but solving them is straight forward Complex and Risky problems - Neveol, interests converge, risk manageable Wicked problems - Problem itself, objectives, and methods unclear and divergent - "Life and death" conflict

Levels of Planning

strategic, tactical, operational/contingency

Intuition

system 2, refers to an individual's inborn ability to synthesize information quickly and effectively

Culture-specific approach

teaches employees the norms and practices of another culture to prepare them to interact with people from that culture effectively it usually fails to give employees a genuine appreciation for the culture they are about to encounter.

managment skills

the ability to carry out the process of achieving org. goals by working with and through people

Diversity Skill

the ability to establish and maintain an organizational workforce that represents a combination of assorted human characteristics appropriate for achieving organizational success

Global Management Skill:

the ability to manage global factors as components of organizational operations'

Social Responsibility Skill

the ability to take action that protects and improves both the welfare of society and the interests of the organization - Can help build loyal customers w/in community

Choice of alternatives

the actual choice among available alternatives. this choice establishes the decision. Typically, managers choose the alternative that maximizes long-term return for the organization.

ethnocentrism,

the belief that one's own group, culture, country, or customs are superior to those of others. Our natural tendency is to judge other groups less favorably than our own.

ethics

the capacity to reflect on values in the corporate decision-making process, to determine how these values and decisions affect various stakeholder groups, and to establish how managers can use these observations in day-to-day company management. strive for success within the confines of sound management practices, which are characterized by fairness and justice Companies can not be competitive if they are not ethical

social responsiveness

the degree of effectiveness and efficiency an organization displays in pursuing its social responsibility activities greater the degree of effectiveness and efficiency, the more socially responsive the organization is said to be

Short-Term and Long-Term Orientation.

the degree to which a culture deemphasizes short-run success in favor of long-run success. Cultures that focus more on long-run success emphasize activities like planning, educating, rewarding long-run results, and keeping a future-oriented perspective. cultures that focus more on short-run success emphasize training to enable one to do a job now, rewarding short-term results, and maintaining a day-to-day perspective. Asian societies generally are among the countries most focused on long-term success. Pakistan is an example of a country that values a short-term orientation.

Power Distance.

the degree to which a society promotes an unequal distribution of power. Countries that heavily promote power distance have citizens who tend to emphasize, expect, and accept leadership that is more autocratic than democratic. Ex: Mexico and France value more autocratic leadership United States is an example of a country that tends to value more democratic leadership.

Individualism and Collectivism.

the degree to which people in a society operate primarily as individuals or operate primarily within groups. People operating as individuals tend to focus on meeting their own needs, to be self-reliant, and to succeed by competing with others. people who operate collectively tend to build relationships with others and downplay individualism business success is pursued through relationships and cooperation among group members China and South Korea are examples of countries that emphasize collectivism, whereas Australia, Canada, and the United States are examples of countries that emphasize individualism.

Masculinity and Femininity.

the extent to which a culture emphasizes traditional masculine or feminine values. Traditional masculine values include competitiveness, assertiveness, success, and wealth. Traditional feminine values include caring for and nurturing others, and increasing the quality of life.

Uncertainty Avoidance

the extent to which a society feels threatened by uncertain or unpredictable situations. People in countries that are high in uncertainty avoidance prefer being in more defined and predictable situations Greece and Japan feel more threatened by uncertainty than do the United States and Canada. Correspondingly, the citizens of Greece and Japan would be less able to tolerate risk and uncertainty in their lives than would the citizens of the United States.

future

the key in discussing decision-making conditions. Because organizations and their environments are constantly changing, future consequences of implemented decisions are not perfectly predictable.

Social responsibility (corporate social resp.)

the managerial obligation to benefit society and fulfill the organization's legal and economic responsibilities A manager must strive to achieve societal and organizational goals - Attention (management and society) given to social responsibility has increased

rational decision-making process is based on three primary assumptions

the model assumes that humans are economic beings with the objective of maximizing satisfaction or return. it assumes that, within the decision-making situation, all alternatives and their possible consequences are known. decision makers have some priority system to guide them in ranking the desirability of each alternative

if an organization is located in a country that is not party to an international market agreement

the organization's plan must include steps for competing with organizations located in nations that are parties to such an agreement

If an organization is located in a country that is party to an international market agreement

the organization's plan should include steps for taking maximum advantage of that agreement

Repatriation

the process of bringing individuals who have been working abroad back to their home country and reintegrating them into the organization's home-country operations issues: - greatly miss it when they return home - disappointed when it fails to live up to their fantasies - others acquire foreign-based habits that are undesirable from the organization's viewpoint and are hard to break

Training

the process of developing qualities in human resources that will make employees more productive and better able to contribute to organizational goal attainment.

Social values

the relative worth society places on different ways of existence and functioning.

Culture

the set of characteristics of a given group of people and their environment. components of a culture that are generally designated as important are norms, values, customs, beliefs, attitudes, habits, skills, state of technology, level of education, and religion.

organization structure

the sum of all established relationships among resources within an organization set up according to the major business functions the organization performs, such as production or marketing the major products the organization sells, such as brakes or electrical parts; or the geographic areas within which the organization does business, such as North America or Europe

complexities with Control in multinational corporations

to deal with the problem of different currencies, management must decide how to compare profits generated by organizational units located in different countries and therefore expressed in terms of different currencies. geographically separated. This increased distance usually makes it difficult for multinational managers to keep a close watch on operations in foreign countries. To overcome: carefully designing the communication network or information system that links the units (standardization of computer equipment )

key factors are essential to the success of an MBO program

top management must be committed to the MBO process and set appropriate objectives for the organization. managers and subordinates together must develop and agree on each individual's goals employee performance should be evaluated conscientiously against established objectives. management must follow through on employee performance evaluations by rewarding employees accordingly.

factors affecting choice of entry mode

transport costs trade barriers political risks economic risks costs of operation firm strategy

standard-arrangement decisions are

typically made according to established management guidelines.

single-use plan

used only once—or, at most, a few times—because it focuses on unique or rare situations within the organization. subdivided into programs and budgets

Direct investing

uses the assets of one company to purchase the operating assets (e.g., factories) of another company. International planning in this area emphasizes reaching organizational objectives through the purchase of the operating assets of another company in a foreign country. Lower manufacturing wages and lower land costs in the United States than in Japan are key attractions for Japanese firm

marketing orientation of decision makers

view themselves as commodities that are only as valuable as the decisions they make. Thus, they try to make decisions that will enhance their value, and they are highly conscious of what others think of their decisions.

Asian-Pacific Economic Cooperation APEC

was established in 1989 to further the economic growth and prosperity of the Asia-Pacific community. worked to reduce tariffs and other trade barriers across the Asia-Pacific region. based on the concept that free (safe) and open trade creates greater opportunities for international trade and related prosperity among member nations. countries around the globe

career plateauing

when promotional advancement is either not possible or not desired by the worker a period of little or no apparent progress in the growth of a career

bounded rationality

which refers to the fact that managers are bounded in terms of time, computational power, and knowledge when making decisions -- managers do not always have access to the resources required to make rational decisions Outcome = satisfy, which occurs when an individual makes a decision that is not optimal but is "good enough."

Triple bottom-line

→ All three sustainability gauges (the economy (which includes profit), the environment, and society) for organizational performance considered collectively the overall degree of sustainability achieved by any organization is judged by collective accomplishments in all three of these areas

stakeholders

→ Individual or group that is directly or indirectly affected by an organization's decisions Ex: stockholders, or owners of the organization; suppliers; lenders; government agencies; employees and unions; consumers; competitors; and local communities as well as society at large.

Social responsiveness and decision-making

→ The socially responsive organization that is both effective and efficient meets its social responsibilities without wasting organizational resources in the process

sustainable organization challenge.

→ To be successful in building and operating socially sensitive organizations over the long run, modern managers must face the challenge of crafting sustainable organizations Challenge is a test that modern managers must commonly succeed at in order for organizations to be good corporate citizens.

deciding the Steps for achieving sustainability

→ actual steps that managers take to increase organizational sustainability can vary drastically from organization to organization -- manager must understand the unique characteristics of the particular organization and the industry within which that organization exists ---- Based on understanding, management must tailor sustainability activities and processes that best meet the needs of the individual organization.

social dynamics that can interfere with workforce productivity.

→ ethnocentrism, prejudices, and stereotypes inhibit people's ability to process information accurately